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Mastering Risk Management: Guide from TOP investorWelcome to the comprehensive guide on mastering risk management in cryptocurrency trading. In this detailed tutorial, we'll walk you through the essential principles of calculating stop losses, determining risk percentage per trade, and strategically placing stops for optimal risk mitigation. Whether you're a novice or an experienced trader, understanding and implementing effective risk management is paramount for sustained success in the volatile crypto market. Opening a Position on TradingView Brief overview of TradingView and accessing the "projection" section for long positions. A step-by-step guide on how to initiate a long position using TradingView. The 5 Fundamental Principles: Introduction to the five key principles of effective risk management. 1: Trend Following 2: Not Gambling but Trading 3: Entry after retest 4: Stick to your strategy 5: Don't overtrade Calculating Stop Losses 2.2 Risk Percentage Per Trade: Explanation of the concept of risk percentage per trade (e.g., 0.5% of the trading capital). Position sizing is the process of allocating a specific percentage of your crypto assets for trading, with the goal of managing risk effectively. To calculate your position size: Determine Your Risk Per Trade: Decide the percentage of your total account value you're comfortable risking on a trade. Typically advised to risk 1–3% of your trading balance per trade. For example, with a $5,000 balance and a 2% risk, you'd only lose $100 per trade. Set Your Stop-Loss: Determine your stop-loss level, the point at which you exit a trade if it moves against you. The stop-loss helps control losses and is crucial for risk management. Consider Position Size: Use your risk percentage and stop-loss to calculate the position size. Position size varies based on the distance of the stop loss; it's smaller for wider stops and larger for tighter stops. Proper position sizing ensures consistent risk, regardless of the trade amount. By following these steps, you can strategically size your positions, balancing risk and potential rewards in your crypto trading endeavors. Strategic Placement of Stop Losses Hiding Behind Local Lows: The rationale behind placing stop losses just below local lows for effective risk containment.Beneath Manipulation Zones: Strategic placement of stop losses under zones susceptible to manipulation. The importance of avoiding regions where price is unlikely to return if manipulation has occurred. Practical Examples The Anatomy of a Good Stop Loss: Visual representation of a well-placed stop loss using real-life chart examples. 4.2 Pitfalls of Poorly Placed Stop Losses: Analysis of common mistakes in stop loss placement and their consequences. Conclusion: Empowering Your Trading Journey As we conclude this in-depth guide, remember that effective risk management is the cornerstone of successful trading. From understanding the basics of stop losses to strategically placing them based on market dynamics, each step contributes to minimizing potential losses and maximizing gains. Implement these principles in your trading strategy, adapt them to your risk tolerance, and embark on a journey of informed and calculated trading decisions. 💡 Mastering Risk | 📊 Setting Stop Losses | ⚖️ Calculating Risk Percentage | 🎯 Strategic Placement | 📈 Empowering Your Trades 💬 Engage in the discussion: Share your experiences with risk management, ask questions, and join a community committed to fostering intelligent and secure trading practices. 🌐✨
Education
by Yaroslav_Krasko
Role of Risk Management in Trading and How to calculate riskThe Foundations of Solid Risk Management 🛡️📊: Risk management in trading involves a series of strategic decisions aimed at minimizing potential losses. It revolves around understanding the risks associated with each trade and employing measures to mitigate them. Whether you're a novice or an experienced trader, risk management remains a non-negotiable aspect of sustainable trading. 👍 Pros of Effective Risk Management: Shields your trading capital from significant losses. Provides a structured framework for decision-making. Fosters discipline and rationality in the face of market fluctuations. 👎 Cons of Neglecting Risk Management: Exposes your portfolio to undue risks that can lead to substantial losses. Increases the likelihood of emotional decision-making driven by fear and greed. The Emotional and Financial Benefits of Risk Management 🧘‍♂️❤️: Effective risk management isn't just about preserving your financial resources; it's also about maintaining emotional equilibrium. When traders implement robust risk management strategies, they reduce the psychological stress and anxiety that often accompany trading. This enables traders to make more logical decisions, avoiding impulsive actions triggered by heightened emotions. Calculating Position Size and Setting Stop Losses 📈🛑: Two key elements of risk management are calculating the appropriate position size and setting stop-loss levels. These practices are integral to controlling the amount of capital at risk in each trade. By determining the position size based on a percentage of your capital and setting stop-loss orders to limit potential losses, traders ensure that no single trade can significantly erode their account balance. Comparing Potential Losses and Gains for Different Risk Management Scenarios 💹📉: Let's explore how the 2% rule affects potential outcomes for different risk management scenarios: Risking 2% of a $1000 Deposit: Maximum Risk per Trade: $20 (2% of $1000) Potential Loss: Limited to $20 per trade Potential Gain: Can vary, but the focus is on maintaining risk control Risking 5% of a $1000 Deposit: Maximum Risk per Trade: $50 (5% of $1000) Potential Loss: Larger at $50 per trade Potential Gain: Higher, but the risk of significant losses is elevated Risking 10% of a $1000 Deposit: Maximum Risk per Trade: $100 (10% of $1000) Potential Loss: Considerably larger at $100 per trade Potential Gain: Higher compared to 2% risk, but risk of capital depletion is significant How to calculate your position size ? You can easily calculate risk directly in TradingView using the built-in calculator! Choose the direction of your position - long or short. The next step is to set up according to your deposit and risk per trade. After that, simply drag it onto the chart in line with your stop loss and take profit (more on this in the upcoming article), and it will automatically calculate the position size for you!
Editors' picks
Education
by Yaroslav_Krasko
11
Let's Talk About RepaintingTechnical indicators are characterized by processing historical data, in a causal real world and for the sake of our analysis, we would expect indicators historical outputs to remain the same right? Well, we will see that this is not always the case, and that certain indicators can change appearance. 1. Repainting Indicators In Technical analysis repainting is a behavior mostly associated with technical indicators characterized by a change of their historical outputs over time, that is the indicator results given at time t, t-1, t-2, t-3... would change at time t+n . More easily put we can say that the past results of such indicator are always subject to change, hence the term repainting (reapply paint over something). As you could imagine it would be fairly hard to keep track of an indicator performance subject to repainting, but why does this behavior occur in the first place? There are various causes. 1.1 Non-Causality - When Indicators "Look Ahead" One cause of repainting is given by indicators that are non-causal. The output of a non-causal indicator is dependent on future inputs, as such at time t the indicator would have access to prices at time t+1,t+1...t+n . You might have already seen a few non-causal indicators, these tend to generally look excessively performant (like most repainting indicators). In PineScript we can access future prices through the use of the security function and lookahead argument. In the above chart, we can see the output of the security function. Indicators processing this output of the security function would of course inherit this non-causal behavior and would as such repaint. The above case shows the Nayadara Watson Estimator, a Kernel smoothing technique whose output at times 0,1...t-1 all depends on future inputs with the exception of the output at time t . 1.2 Other Causes Non-causality is often the main cause of repainting but not the only one. Indicators initiating their calculation at a different time can also repaint, this mostly occurs with indicators based on recursive calculations. The indicator below is a clear example of this behavior. We can see that the same indicator being calculated 100 bars later drastically changes its outputs, in the case where historical data were to removed, thus changing the starting calculation point of the indicator, we would be subject to a different historical output. Another cause that is not proper to the indicator is the occurrence of changes in the historical prices data, which can cause indicators to repaint, this could for example occur if prices becomes split adjusted. 2. Can Repainting Indicators Be Useful? There is no need to say that it can sound unproductive to use repainting indicators, the foundation of technical analysis is based on the study of historical information, which is subject to change with repainting indicators. Trading with technical indicators also often involves backtesting them, which could be unproductive in the case of a repainting indicator. But this hardly means they can't be useful, but simply that their usage can be limited to certain operations. Above we can see a forward-backward third order Butterworth filter, the forward backward filtering operation makes the output subject to repainting, however, we can use this filter to more easily observe market price trends, filtering out noisy fluctuations. This can for example make the identification of patterns easier. Certain repainting indicators can also be used for the core calculation of other indicators without introducing repainting in the final output. One example can be given in the case where we use forward backward filtering. Above we perform forward backward filtering using an exponential moving average (output in blue), and return the sum of absolute error between the price and the historical output of the forward backward exponential moving average below (in green), this new calculation makes use of a repainting operation but will not repaint. 3. Not Everything Repaint We have seen the definition and certain causes of repainting, it is important not to use the wrong qualifiers when describing the behaviors of certain indicators. For example, it can be common to see indicators whose elements are simply shifted in the past in order to account for a specific amount of lag, this doesn't make them repainting indicators, as they can be purely based on present and past historical data, and would as such not be subject to change in their historical outputs. The above chart shows a triangular moving average shifted length-1 bars in the past, it is still fully causal. 4. Conclusion This post briefly introduced the concept of repainting indicators and how these can be used. It is important to be careful that an indicator does not repaint before attempting certain analysis using them. The replay tool available for users chart can help identify if an indicator is repainting or not. Even if repainting indicators will always have a misleading image associated with them, they can still play a role when it comes analyzing market data as well as creating additional indicators. 5. Main Takeaways Repainting is a technical indicator behavior characterized by a change of historical outputs over time. Repainting indicators can be both causal (only using present and past input data) and non-causal (use future input data). Certain repainting indicators can be used for the core calculation for other indicators without introducing repainting. Note all indicators are subject to repainting.
COINBASE:BTCUSDEducation
by LuxAlgo
20
My model Of Risk ManagementHello Traders! First of all, I must tell you that trading is 90% psychology 9% is Method and 1% is your deals/trades that you put. Discipline is the most important part of psychology and there are some factors that keep your discipline alive and one of them is Risk Management. The trading method has more importance than RIsk Management and if you are trading from methods that are available on the internet then I will say RIP because the knowledge available on the internet is complete trash because it needs lots of modification before applying on a live account. Learn yourself and work hard, Create your own method with a personal trading style and if you need any help then I am here to help you. Why do we need Risk Management? Risk management helps you to deal with uncertainty. If we look at the fact that 90% of the traders lose money then there is no difference between you and 90% of the traders if you completely ignore risk management. If you have not planned your Risk management yet then here is my model of Risk management. In my model, I only take 2% of the risk per trade and we will only trade if the trade will provide 1:3 or more Risk: Reward. Good risk-reward is the only key that will keep growing your account. My average Risk:Reward ratio is 1:4 and my win rate is close to 60%. Here is an amazing calculation. Suppose your trading balance is 1000$ so you will trade with 10% of the account which is 100$ and trade with 10x leverage and your stop loss must not be more than 2% means if you lose you will lose only 20$ which is 2% of the trading balance and according to my method our target will give you 1:4 means you will gain 80$ at the target. If my accuracy is 60% then if we trade 10 trades in a week means We lost 4 trades and with every trade we lost -20$. So -20$X4 = -80$ We won 6 trades and with every trade, we made 80$ profit. So 80$X6 = 480$ In the end, we will make 480$-80$ = 400$ easily. That's the power of Risk management also it's a power of a Good trading Method. Here is another Example If a method provides 1:3 R:R with 50% accuracy then here is another interesting calculation If we trade 30 trades in a month means we will lose 15 and will win 15. Same as above we will trade with 10% of the account which is 100$ and trade with 10x leverage and stop loss is not more than 2% and the target is 6%. (This is an average calculation of your all trades.) We will lose -20$ per trade and with 15 losses we will lose 20$X15 = 300$ We will gain 60$ per trade and with 15 wins we will gain 60$x15 = 900$ So in the End we will gain 900$-300$ = 600$ Even with a bad win rate, you will definitely keep growing your account. It doesn't matter if you lose 3-4 consecutive trades. You will definitely make money and will end up in profit. Also, remember I told you Method is more important than risk management and if you don't have a good method then work on it or follow my trades until you create yours. Don't forget to hit the like button and follow to stay connected.
Education
by Aadil1000x
4
How To Calculate Risk/Reward To Trade & Invest In Crypto MarketHi everyone: Today I want to make this educational video on how to calculate your risk/reward in trading and investing in the cryptocurrency market. Many newcomers in the industry are not aware of the importance of risk management. So today let's give out different examples of them on how to properly calculate the $, %, and setting the SL/TP. This video is intended to help traders and investors to understand how to calculate the amount to risk per trade, or per investment purpose. I will give different examples of going long and short in trading, as well as buying coins for the purpose of investment. Doesn't matter what crypto broker exchange you use, this calculation/formula will work, you will just need to do some simple math to get to the right numbers. Example 1: Want to go long on BTC in a trade Scenario: Trading Account $12,000 Risk 1% of your trading account Want to go long on BTC when price hits $70,000 You want the Stop Loss @$66,000, and a TP @ $80,000 Calculation: Calculate your 1% of the trading account: $12,000 Account x 0.01 $120 per trade Divide the $ you willing to risk to the SL amount $120 / $4000 = 0.03 Set your entry order or market order for 0.03 BTC @ $70,000 price 0.03 x $70,000 = $2,100 (This is the amount you will need in your trading account to execute this position. If you have leverage then its less $ needed) Set your SL at $66,000 If price hits your SL, your order would be 0.03 BTC x $66,000 = $1,980 $2,100 - 1,980 = $120 = 1% of your account Set your TP at $80,000 If price hits your TP, your order would be 0.03 BTC x $80,000 = $2,400 $2,400 - $2,100 = $300 = 2.5% of your account Example 2: Want to go long on ADA in a trade Scenario: Trading Account $800 Risk 1% of your trading account Want to go long on ADA when price hits $2.30 You want the Stop Loss @1.70 Calculation: Calculate your 1% of the trading account: $800 Account x 0.01 = $8 per trade Divide the $ you willing to risk to the SL $8 / $0.60 = 13.34 Set your entry order or market order for 13.34 ADA @ 2.30 price 13.34 x 2.30 = $30.68 (This is the amount you will need in your trading account to execute this position. If you have leverage then its less $ needed) Set your SL at $1.70 If price hits your SL, your order would be 13.34 ADA x $1.70 = $22.68 $30.68 - $22.68 = $8 = 1% of your account Set your TP at $4.00 If price hits your TP, your order would be 13.34 ADA x $4.00 = $53.36 $53.36 - $30.68 = $22.68 = 2.83% of your account Example 3: Want to go short on TRX in a trade Scenario: Trading Account $54,000 Risk 1.5% of your trading account Want to go short on TRX when price hits $0.11 You want the Stop Loss @ $0.13 Calculation: Calculate your 1.5% of the trading account: $54,000 Account x 0.0150 = $810 per trade Divide the $ you willing to risk to the SL $810 / $0.02 = 40,500 Set your entry order or market order for 40,500 TRX @ 0.11 price 40,500 x 0.11 = $4,455 (This is the amount you will need in your trading account to execute this position. If you have leverage then its less $ needed) Set your SL at $0.13 If price hits your SL, your order would be 40,500 TRX x $0.13 = 5,265 $5265 - $4455 = $810 = 1.5% of your account Set your TP at $0.07 If price hits your TP, your order would be 40,500 TRX x $0.07 = $2,835 $4,455 - $2,835 = $1,620 = 2% of your account Example 4: Want to buy ETH to hold for long term as investment Scenario: Investing Account $20,000 Risk 10% of your investing account Want to buy ETH to hold for long terms Want to enter when price hits $4,900 Calculation: Calculate your 10% of the investing account: $20,000 Account x 0.10 = $2,000 per investment Divide the $ you willing to risk to the price you want to enter $2,000 / $4,900 = 0.4082 Set your entry order or market order for 0.4082 ETH @ $4,900 price 0.4082 x $4,900 = $2000 (This is the amount you will need in your investing account to execute this buy.) You want to lose no more than 25% of your original $2,000 investment. $2,000 x 0.75 = $1,500 $1,500 / 0.4082 = $3,674.67 Set your alert and SL at $3,674.67 If price hits your alert/SL, your order would be 0.4082 ETH x $3,674.679 = $1500 $2,000 - $1500 = $500 = 25% of $2,000 You want to gain about 50% of your original investment before selling. $2,000 x 1.50 = $3,000 $3,000 / 0.4082 = $7,349.34 Set your alert and TP at $7,349.34 If price hits your TP, your order would be 0.4082 ETH x $7,349.34 = 3,000.00 $3,000 - $2,000 = $1,000 = 50% of $2,000 Example 5: Want to buy MATIC to hold for long term as investment Scenario: Investing Account $1,500 Risk 20% of your investing account Want to buy MATIC to hold for long terms Want to enter when price hits $2.25 Calculation: Calculate your 20% of the investing account: $1,500 Account x 0.20 = $300 per investment Divide the $ you willing to risk to the price you want to enter $300 / $2.25 = 133.34 MATIC Set your entry order or market order for 133.34 MATIC @ $2.25 price 133.34 x $2.25 = $300 (This is the amount you will need in your investing account to execute this buy.) You want to lose no more than 50% of your original $300 investment. $300 x 0.50 = $150 $150 / 133.34 = $1.1249 Set your alert and SL at $1.1249 If price hits your alert/SL, your order would be 133.34 MATIC x $1.1249 = $149.99 $300 - $149.99 = $150.01 = 50% of $300 You want to gain about 75% of your original investment before selling. $300 x 1.75 = $525 $525/133.34 = $3.9373 Set your alert and TP at $3.9373 If price hits your TP, your order would be 133.34 MATIC x $3.9373 = $525 525 - $300 = $225 = 75% of $300 Any questions, comments and feedback welcome to let me know. If you like more of these contents, like, subscribe/follow and comment for me to keep doing them. :) Jojo
BITSTAMP:BTCUSDEducation
by jojofang0901
35
When Can I Become a Full Time Trader?One question that constantly comes up, and understandably so is, When Can I Become a Full Time Trader? Being a trader is like running a business. You are the manager / owner / operator of "You, Inc." How much capital does it take to run your business? What's your monthly P&L? How much money do you need to have in "float" in case of emergencies (like, oh, I don't know, a global pandemic that sends the price of everyday items skyrocketing?) If your goal is to become a full time trader, where trading is your primary source of income and provides you with all of your material needs for now AND the foreseeable future, do you have a PLAN on how to get there? Do you know how much capital you need and / or what rate of return you need from your trading system and / or how many trades on average you need to generate your income target? Let's figure out how much Monthly income you need. First, take your monthly expenses. Include things like rent or a mortgage, a car payment, utilities, gas expenses for your car, etc. and total them up. Second, take all expenses that might be annual or irregular and put an amortized amount each month into a separate checking account for when they come up. For instance, HOA fees may be billed semi-annually. You may plan on a vacation every year. You may have to replace a major appliance every 3 years. Factor all those expenses and what it may cost as a monthly savings plan and put them into that account. These expenses would come out of that account without touching your monthly income. For example, it's easier to pay $69/month in expectation you will have to replace your fridge, stove, or set of tires every 3 years than to have to come up with an unexpected $2,500 when the fridge dies on you. With these initial stats, you know how much you need to make a living trading... just to break even. So, what does the responsible business owner (trader) need to do? DOUBLE that number so you are putting an equal amount in savings (for a rainy day / a down month / or the "nest egg") and factor in taxes, say an additional $35% in the United States - the top tax bracket. This final number is what you should comfortably want to make to consider yourself financially free – not dependent on ANY source of income except for your efforts in trading. Now, given how much money you want / need to live on, what type of trading performance against what amount of capital do you need to achieve this monthly desired income?  How much capital do you have in your trading account? What is the Win Rate of your current trading system? How much money do you earn on each winning trade and how much do you give back to the market on every losing trade? Finally, how many trades on average does your trading system find for you each day given the hours you work your trading business? Let's assume you have a $20K trading account, and you trade using the 1% Rule of Risk Management and the 3R rule of expectation – your Reward-to-Risk Ratio. Let's also say that your trading system is able to locate two trades per day during the timeframe that you are "working" the markets and your Win Rate is 50%. So, if you you win one trade and lose one trade each day, winning $600 and losing $200, you are netting $400 for the day. Multiply this by 20 (the average number of trading days in a month) and you will have an estimate of what monthly income you can generate from your trading account. An important question is then, "How many trades might you take per day?" For example, during one backtesting period I found that my trading system, Sabre, generates an average of 11.7 trades per day in the Futures Market on the 1-hour timeframe. If you decided that you would be trading Sabre for four hours per day, say from 5-7 in the morning and 8-10 at night, it would pull up an average of 2 trades per day.  Once you are armed with all this information: Your trading account size, your trading system win rate, your trading hours and trade frequency, you can calculate how much income you may be able to generate from your trading system given that all things go according to plan. And as Hannibal Smith liked to say, "I love it when a plan comes together!" Once you run the calculations, if you run short of what you would like to earn, you can now determine what action(s) you might want to take to get you closer to your goal in a quicker timeframe. For example, if your win rate is 30% with your current trading system what would it take to get it up to 60%? Do you need to check your psychology? Are you constantly leaving money on the table? Are you fearful of entering trades that you should have logically had no problem getting into? Should you join a trading group that is experiencing a level of success you want to achieve to help you overcome any technical or psychological hurdles? Mechanically, if your trading system is not giving you the number of trades necessary to reach your income goals, what can you do? Perhaps you can go down a timeframe. Theoretically, if you are finding 2 opportunities per day on the 60 minute timeframe, you may be able to find as many as 8 opportunities per day by going down to the 15 minute timeframe. Maybe it's about capital: If you have a $5,000 account you might find a way to  put another $10,000 in there and instead of having a $50/$150 Risk:Reward ratio with a $5,000 account you could have a $150/$450 Risk:Reward ratio with a $15,000 account.  One way to grow your account is to never 'withdraw' by keeping all profits until your account reaches the 'critical mass' necessary to generate the required income. That's the beauty of exponential growth! Additionally, perhaps you can add a second trade strategy to your mix. If you are a Supply-and-Demand trader maybe you can find a breakout strategy to take advantage of additional opportunities. After developing Sabre, my trend-trading strategy, I developed what we call the Clubhaul: a counter-trend strategy. Now I had 2 different strategies, increasing my daily number of opportunities to find successful trades. Having access to multiple trading strategies is like the handyman with three different hammers or multiple sets of screwdrivers: They each do a specific job under specific conditions, and it's not always the case that "one size fits all." What goes for the handyman's toolbox, is also applicable for your trading toolbox. To get to where you want to go you need to know where you are starting from. As G.I. Joe says, "Knowing is half the battle." So hopefully you can create yourself a spreadsheet and crunch the numbers and you can see (1) where you currently are in your trading journey (how viable is my trading plan, how much capital do I have, what hours will I be working the markets) (2) where you want to be ultimately (how much income do I want to generate on a monthly basis, how much capital do I need to consistently generate that income, and which strategy(ies) will get me there? and (3) what I need to DO to get from where I am to where I want to be. Trade Well!
Editors' picks
Education
by ocaptain
146
Big Alert: Ethereum Market Cap it's extremely bullish!!!At the moment, analyzing in the monthly chart, I see that the perspective for the market cap it's extremely bullish for the next months. That mean that Ethereum it's in the true bull market. Now, in this special analysis and one of my topics that I want to discuss with you, I want to talk about my prediction of the Ethereum market cap and how to calculate the future price for Ethereum, and apply my past analysis in Ethereum like Ethereum dominance to have an accuracy of the possible price to sell when you hold Ethereum, you're going to sell expensive. Now, first, noticed in this website: coinmarketcap.com In this website, you can to found out the Ethereum tools to analyze to get and know how much Ethereum assets are in the circulation, the actual market cap and much more. Actually, there're 115, 005, 422 (millions) Ethereum assets in circulation. And the market cap it's around of $208 billion. Now, to calculate the actual price, you wil need to divided your Ethereum assets for the actual market cap. Formula: Ethereum market cap / Ethereum assets in circulation $208.30 billion/ 115,005,422 (millions) Ethereum assets = $1,811.21 USD. Remember, the price alter in their movement. But that's a basic math operations. Now, if we use the following example and supposed that Ethereum reach the market cap of $500 billion that I share you in my chart. We would need to divided the market cap of $500 billion and the Ethereum assets in circulation to know the future price of Ethereum. Operation: 500 bilion/ 115,005,244 Ethereum assets = $4,347.62 USD If Ethereum reach a market cap of $500 billion, we can to see an Ethereum at $4,347 USD, that it's an amazing price. Now, if you want to know what happening if Ethereum reach a market cap of $1 trillion, well, the price will be exactly at $8,695.24 USD. And if Ethereum reach a market cap value in $2 trillion, the price will be exactly at $17,390.48 USD. That it's a impeccable price. Now, as I calculate an objective that Ethereum could to grow so near of 1,600%, and well, if we apply and supposed that Ethereum reach a little more a market over $2 trillion and suppposed that we're going to sell when the market reach up the $2.37 trillion, the price will be $20,607 USD. Guys, this it's amazing to know this hide information and be prepared when the market it's reach a maximum price that we can to sell using this data analytics if you hold Ethereum as investments. I don't have any doubts that Ethereum reach the 5 digits of $10,000 USD in medium to long term for the next months. And well, if Ethereum in case that overpass a market of $3 trillion, we can to double the 1,600% that mean a 3,200%, that it's another theory becuase in sometimes crytpocurrency could to multiply x2 if we use the comparison of the up possible to multiply x2, that mean 3,200% it's could to reach a market cap of nea of $5 trillion, and if this pass, the price of Ethereum could to round approximately at $40,000 USD for each Ethereum (but this it's my other perspective if the market of Ethereum could to multiply x2 as we see in the past bull rally 2017, I am not in 2017 when was the bull run of Bitcoin and cryptocurrency, I appear in Bitcoin later of the bul rally in 2017 and I knowed Bitcoin in in the started of the year 2018. But, yes I get this information to calculate, if you see in the Ethereum/Bitcoin chart, in 2017 Ethereum have a cost of near of 0.2 Bitcoin, that mean if you buy at least 10 Ethereum in 2017, you could to get near of 2 Bitcoin, and today, 2 Bitcoin have a value over $100,000 USD. But that it's my pure theory if in case that Ethereum it's going to double the market cap as the price. For that, I invite you to share this special analysis with others traders to know this information that they'll need to know. And fyou like this information, please get me a like and comment below how did you think about of this idea?
CRYPTOCAP:ETHLong
by harisonhbn9718
1
Little Road Bump ⚠️Of course, when pushing your Hellcat down a long and empty road, the last thing you want to have is an unexpected road bump on the way. This is what the Dow Jones had to experience today (metaphorically). Joe Biden’s announcement of a $1.9 Trillion Covid-19 relief package was not welcomed by the Dow, which reacted to the news with a dip. No need to worry, though! We hold on to our calculations and expect the Dow to approach a range between 31400 and 31700 points before a correctional movement sets in. Alternatively, if the Dow relentlessly pushes the gas pedal, it might also surpass this mark and aim for regions above 33300 points. Are you down to ride? 🚗
CBOT_MINI:YM1!
by MarketIntel
Advanced Tradingview CalculationsThis is a tutorial on how to get the most out of Tradingview by using advanced price calculations. The focus will be on crypto, and more specifically bitcoin. Nevertheless these tricks can be applied to other assets as well. Let's say you want to look at the current bitcoin price. The problem is that there are a lot of different exchanges and they all have different prices. Sure they're all around the same price level, but there's still a difference. So it would be quite useful if we could just look at an average price of all the most relevant markets. Here's how you can make that happen... Average price calculation First you click on the ticker on the top left, which will open the ticker tab. Open the parenthesis by typing: "(". Next you look for the markets you're interested in. In the example on the chart (bottom left line chart) I made an average for Coinbase, Bitstamp, Bitfinex and Binance. So you start typing "BTCUSD" and then with the up/down arrow keys on your keyboard you can select the exchanges you want. Each time you select an exchange you type: "+". Then type "BTCUSD" again and select another exchange. The binance pair is versus USDT instead of USD. So to easily find that market type "BTCUSDT". Once you're done selecting markets you close the parenthesis and divide the whole thing by the amount of markets you've chosen. In my example I took 4 markets so I divided it by 4. Finally press enter. Now you have a price chart that's an average of all the markets you selected. Converted currency price chart On the top left you see a red line chart. This is the Bitflyer spot market. There's an issue though, it's a Japanese Yen pair. I would like to be able to compare it to USD markets. So let's convert it and make a price chart with USD values. Just like last time, open the ticker tab. Look for "BTCJPY" and select the Bitflyer market. Now type "*". We're going to multiply it with a forex pair. Type "JPYUSD" and select a forex pair. When that's done you press enter and your price chart will be in USD instead of JPY! Making ratio's There's so much possible with these types of calculations, but I'll share one more trick to give you some inspiration. Let's compare certain markets with each other and create ratios. To the chart on the right you can see in green a ratio of some of the top USD markets in relation to the top USDT markets. This way we can see which markets have a premium or a discount. It always starts the same way: open the ticker tab. First open the parenthesis: "(". Just like with the average price calculation you're going to select a few USD markets of your liking. I used Coinbase, Bitstamp and Bitfinex for this example. Don't forget to type "+" in between each market. Then close the parenthesis and divide the selected USD markets by 3 (because I'm using 3 markets here). Now type "-" and open the parenthesis again. We're going to add a few USDT markets just like we did for USD. I used Binance, Huobi and Poloniex. Again close the parenthesis and divide by 3. And finally press enter of course. The price chart will be replaced by the ratio and it'll look kind of messy. Let's make it look like a nice indicator. You can do this by clicking on the "compare" button and doing the entire calculation there. It'll add a big fat orange line on top of your price chart. By clicking on the three dots you can click on "new pane below". Then go to the style settings and change it to your liking. I made it green and decided to use a line chart with markers. Looks pretty nice. Interesting ratio too... The blue ratio on the top of the chart is a simple Coinbase/Bitfinex comparison. Click the "compare" button again and type the following formula: COINBASE:BTCUSD-BITFINEX:BTCUSD This way you can see which exchange is more bullish/bearish. That's all I have for you today. Hopefully you found it interesting.
Editors' picks
COINBASE:BTCUSDEducation
by UnknownUnicorn2188849
23
Understanding Traditional Pivot Points (Formula Diagram)Learning about market Pivot Points is powerful information as you can see in this 15 min Bitcoin session chart, the Pivot Points and their components (S1,R1,R2,R3, etc) are clearly respected by price action I did a pretty extensive search for a diagram/drawing to better understand the formula for pivot points and I noticed there really are none... This snapshot of a chart will help you to better understand how the Pivot Points are established as time goes on in the market... In the diagram you can clearly see what a session term is, what its high/low and close are... The formula for establishing the next session's Pivot Pivot is: high of previous session + low of previous session + close/3 = next session's Pivot Point I will be making other diagram's of other components of a session such as the S1,S2,R1,R2,R3, etc. If you're interested in learning more about Technical Analysis, subscribe to my youtube channel: "Kick Back Time" The more subscribers I get there, the more I will be encouraged to produce educational videos * You can find this indicator on Trading View by doing a search and it should come up right at the top. I like to use the standard/traditional
BITSTAMP:BTCUSDEducation
by Kick_Back_Time
1
RCN/ETH Moving Up? Pennant Pole Forming, but Heavy ResistanceThis continues to be another thought exercise for me. Hopefully it will be for you too. Any comments about my approaches are welcome as we often best see the errors in others than we do in ourselves. It seems the market sometimes speaks well to me while other times, it's a completely foreign language. Continuing the mission to dig myself out of negative holdings, I'm looking for ways to buy and sell. In looking at RCN/ETH, I noticed a flag formation forming. The last time I saw one forming, it hit about 2/3rds of the way up, so I'm planning to sell at either 2/3rds up or completely up depending on how the market is feeling. I've read that flag poles are what to look for and pennants tend to indicate a potential reversal of trend. Maybe my brain is a bit off, but I've seen pennant poles indicate upwards growth. Part of this thought exercise is to help me check my logic. TA today is based on 1 hr bands and will be noted otherwise if not. GOOD FOR UPTREND: TA that indicate yes towards an uptrend. *Pole is near completion and is well formed. *Bands indicate upward continuation with increased volume post-sqeeze. *Volume is reducing as market comes to equilibrium. *RSI is currently pointing slightly up at 62 after hitting high on pole at 70.84 *MACD is showing upwards growth. BAD FOR UPTREND TA that indicates potential issues. *Sell/Buy book 0.00032: 254,687 0.00031: 102,638 0.00030: 104,273 0.00029: 21,544 Current price: .00028379 ETH 0.00028: 18,088 0.00027: 71,581 0.00026: 34,639 0.00025: 28,329 *RSI is still higher overall at 62 with recent overall low bear-like market behavior for past several days. *MACD blue line is flatlining while signal line approaches CALCULATIONS: *Pennant pole calculation Top of pole: 0.00029420 Minus bottom of pole: 0.00024541 Equals a difference of: 0.00004879 *Sell calculation Bottom of pennant: 0.00027895 Plus pole length: 0.00004879 Equals a sell goal of: 0.00032774
R
by Desreversti
2